Social Solutions Inc. is leaving Baltimore’s Emerging Technology Center incubator for 17,000 square feet of office space at the 1,000-acre Crossroads @95 development in White Marsh.
The move will give the software company a chance to grow — it has desks in the hallways at its current space in Canton, CEO Matt Schubert said. Social Solutions is building out the space with plans to double its 85-person work force over the next 18 months, he said.
It’s a significant step for the company, which has grown from annual revenue of $1 million to $11 million during its four-year stay at the incubator. And it’s another lease for the large office park, which has landed several major headquarters as tenants but recently has held up construction on buildings because other lessees are scarce.
Schubert said the company was able to be an exception to that because demand for its software has grown as donations to nonprofits have dwindled in the economic downturn.
Social Solutions’ software helps private and governmental social service agencies track the effectiveness of programs they oversee, pulling out hard numbers that can prove a return on investment for donors or taxpayers.
President Barack Obama’s emphasis on rewarding nonprofits and social programs that prove their success has been and could continue to be a boon to the company, Schubert said.
“More and more, our brand is being associated with high-performing associations,” he added.
The company had been what the incubator had called an “anchor tenant,” meaning it had grown beyond a need for much of the hand-holding and advising most incubator companies get, ETC Executive Director Ann Lansinger said. But she called the move their official graduation from the incubator program.
The ETC is backed by the Baltimore Development Corp., the city’s economic development arm.
But there is no requirement that incubator companies remain in Baltimore City upon graduation, Lansinger said. The White Marsh location is more central for the company’s employees so it made sense, she said.
Social Solutions’ growth has already led to acquisition of one company — Pittsburgh-based Esteam in March — and more could be on the way, Schubert said. Lansinger said the buy showed Social Solutions’ strength — usually it’s incubator companies that are the ones being acquired.
The company will move into the new space Sept. 1, Schubert said. The office park is slated to cost $120 million and could have up to 5 million square feet of office and research space, 400,000 square feet of retail space, two hotels and luxury apartments. But not all of that has been built because tenants for the rest of the space have not signed on.
Developer St. John Properties is leading the development along with Chesapeake Real Estate Group LLC, First Industrial Realty Trust and Somerset Construction Co.